• EUR/AUD moved higher Friday, buoyed by euro strength following an upside surprise in French inflation data.
• France's harmonised inflation rate, adjusted for comparison with other euro zone nations, was 0.8% year-on-year in June, up from 0.6% in May, which was the lowest since December 2020.
• The uptick was led by an acceleration in service prices, which grew 2.4% on the year in June, up from 2.1% in May. INSEE attributed this to quicker rise in lodging, health and transit expenditures.
• Technical indicators remain bullish with RSI at 64 and upward momentum confirmed by rising 5, 9, and 10-day moving averages.
• Immediate resistance is located at 1.8070 (Higher BB), any close above will push the pair towards 1.8184(38.2% fib)
• Strong support is seen at 1.7843 (50% fib) and break below could take the pair towards 1.7726(June 20th low).
Recommendation: Good to buy around 1.7930, with stop loss of 1.7850 and target price of 1.7990
